PENDING HOME SALES IN US SLIP AGAIN IN FEBRUARY

According to the National Association of Realtors, pending home sales slipped in February 2022, marking four consecutive months of transaction decreases.

Three of the four major US regions saw contract signings fall month-over-month, with the Northeast being the only area that reported an increase. All four regions registered a decline in year-over-year contract activity.

The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, waned 4.1% to 104.9 in February. Year-over-year, transac?ons dropped 5.4%. An index of 100 is equal to the level of contract activity in 2001.

"Pending transaction diminished in February mainly due to the low number of homes for sale," said Lawrence Yun, NAR's chief economist. "Buyer demand is still intense, but it's as simple as 'one cannot buy what is not for sale.'"

Along with climbing home prices, Yun added that now buyers must grapple with rising mortgage rates and noted that shoppers will likely want to lock in before rates increase further.

"It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead," he said. "Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers."

As of February 2022, higher mortgage rates and sustained price apprecia?on have led to a year-over-year increase of 28% in mortgage payments.